A2Z plans 500MW municipal waste power plant
The operator and engineering, procurement and construction (EPC) company requires an equity contribution of about Rs 500-600 crore and will raise the funds through IPO and internal accruals.
The company, in the three rounds of funding had attracted investment from private equity investors such as Rakesh Jhunjhunwala, Beacon India Investors and India Equity Partners through Lexington Equity Holdings. The three entities have invested over Rs 130 crore in the company for a 40% stake.
A2Z is among the top ten independent biomass power generation companies in India with close to 60MW of capacity.
In Punjab the company is setting up three co-generation power plants in collaboration with sugar mills on a Build-Own-Operate-Transfer (BOOT) model for a period of 15 years.
A2Z will provide steam and power for operating the manufacturing process of the sugar mills during the crushing season.
A2Z plans to set up 10-15Mw capacity power plants in various cities, depending on the availability of processed solid waste. About 100 tonnes of solid waste is adequate to fuel 1MW.
The biomass power plants can take off within 12 months, when compared to coal projects which require about 3-4 years for commissioning.
The company will set up India’s first municipal solid-waste-to-power project in Kanpur, using refuse derived fuel (RDF), which is derived from solid waste.
The power plant is scheduled to be operational by March 2011 and will have the capacity to produce 15MW of power. The company plans to sell the power to the state as well as on merchant basis.
A2Z Infrastructure, a subsidiary of A2Z Maintenance and Engineering Services, is implementing Asia’s largest integrated municipal solid-waste management project for Kanpur. It processes 1,500 tonnes of municipal solid-waste per day from a population of 3.1 million in the city and also produces 150 tonnes of compost a day from municipal solid-waste under the brand name Vasundhara.